In an effort to sustain the increase in inflows of diaspora remittances, the Central Bank of Nigeria (CBN) begins an incentive policy for senders and recipients of International Money Transfers tagged, the “CBN Naira 4 Dollar Scheme”.
According to the apex bank, the scheme which starts today (Monday) and ends in May 2021 is part of its reforms to boost the inflow of foreign currency into the country.
The CBN had in a circular released over the weekend directed all Deposit Money Banks to pay recipients of diaspora remittances the sum of Five naira (N5) for every one dollar (USD$1), as incentives.
For a better understanding of this incentive, it basically means with this new policy if someone sends you $50,000, you get an additional credit alert for N250,000 naira as incentive.
The statement released and signed by the Director, Trade and Exchange Department, A.S Jibrin reads, “In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria (CBN) hereby announces the introduction of the “CBN Naira 4 Dollar Scheme”, an incentive for senders and recipients of international Money Transfers.
“Accordingly, all recipients of diaspora remittances through CBN licensed IMTOs shall henceforth be paid N5 for every USD1 received as remittance inflow.
“In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every USD1 remitted by sender and collected by designated beneficiary. This incentive is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer the same into their domiciliary account.
“In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the USD sent from abroad but also the additional N5 per USD received. Please note having discussed with banks and IMTOs, the scheme takes effect from Monday 8 March 2021 and ends on Saturday 08 May 2021.
